Cash value determination

Valuate foreclosed real estate more realistically

A realistic appraisal of the expected revenue of individual properties is in demand in recovery situations. Although the auction often takes place years later, the valuation approach must be fixed in advance as part of the termination and reassessment of collateral. It must be based on the sales proceeds, which is achieved in realistic expectation on the auction day.

Especially the data of a future market expectation are not available to the institutes.

Why is transparency missing on the foreclosure market?

  • The procedural durations of the approximately 500 district courts vary widely.
  • Market with significant regional price differences.
  • Revenue expectations of the banks are often based on the debt balance, not the market value.
  • On the day of the foreclosure, the appraisal values are out of date and therefore not in line with the market.
  • The data of the foreclosure market is not statistically recorded.

The Ratinger ZVG Daten GmbH has specialized in the evaluation and trending of real estate in these special situations. The foreclosure specialist has more than 30 years of experience and know-how. When requesting comparables for commercial or private real estate, Argetra’s database of approximately 750,000 properties is used. A comprehensive range of services is available to institutional and private real estate buyers, investors and banks for proper property valuation and trend analysis.

With a small-scale market fluctuation analysis, we support the new capital requirements of banks, which have to perform hard tests twice a year.

The following map shows the uneven distribution of foreclosures in different zipcode areas.

Well-founded research, evaluations and derived trends for the future are the task of the Argetra subsidiary ZVG-Daten GmbH. Thus, the duration of the proceedings is evaluated for all approximately 500 district courts for meanwhile five object types. With trend recognition, banks can underlay why value adjustments should be increased or, if necessary, reversals of value due to market fluctuations can lead to better valuations.

With our database, a developed over the years and mature algorithm for finding real estate, we deliver Comparables on postcode level, in the respective object type, size and construction year class. If, in addition, the correct duration of the procedure is priced in, this leads to a realistic appraisal of a portfolio, to a correct determination of the value of the loan and thus to the present value calculation from the point of view of realization.

When deciding whether a bid before the appointment or on time is lucrative, it is also important to know how long it will take until a follow-up appointment will take place. Only in this way can a comprehensible decision be made on reliable findings.

Benefits for banks, servicers and investors:

  • Procedure duration is available per district court and for five property types.
  • The timing risks of follow-up appointments and their frequency are known.
  • Fulfillment of the required present value calculation with actual values.
  • Analysis of the appraisals enable regional trend statement for the future.
  • Revenue expectations that banks provide to servicers become comprehensible. These are based either on trend statements for the future or in the review on the fixed expert values of the current year.

* These fields are required.